Kemp added the capacity increase would make a major difference to growth prospects in the UK and overseas for the business which has production facilities in Spain and Malaysia.

The investment deal was announced in the same week two conflicting reports into the health of the UK manufacturing industry were published.

The EEF/BDO Manufacturing Outlook report said more manufacturers saw a rise in output and an increase in orders while the purchasing managers’ index (PMI) for August revealed a 26-month low just days earlier.

Andrew Thrower, relationship manager for Lombard, said: “AEV is a great example of a UK manufacturing business which continues to grow its operations on a global scale.”